Harmony, Router Protocol, and Orionx have announced plans to cease operations amid various challenges, impacting users and the broader crypto market.
In a notable shift within the blockchain and cryptocurrency space, Harmony has proposed halting its Layer 1 blockchain, while Router Protocol and the Chilean cryptocurrency exchange Orionx are set to wind down their operations.
Harmony's Shutdown Proposal
On September 6, Harmony introduced a plan to shut down its network, which has been operational since 2019. The developers cited increasing threats from state-sponsored hackers and AI as key reasons for this decision.
The proposal includes freezing the ONE token balances at the last block and transitioning to ERC-20 tokens on Ethereum. These new tokens will be distributed to existing addresses, maintaining the total supply and issuance rate of ONE. However, users will need to withdraw their funds from smart contracts by September 10, as applications and liquidity pools will not be transferable.
Validators are instructed to begin shutting down their nodes after this date. To support users during the transition, a compensation fund of $1.372 million will be established, with disbursements planned over four quarters for those who participate in the governance of the new initiative. The future of Harmony appears to be linked to the development of AI-generated video content.
The announcement had an immediate effect on the market, with ONE's price dropping nearly 3% to $0.007.
Router Protocol to Cease Operations by September 30
Router Protocol has announced it will fully discontinue its operations by September 30 after more than four years of facilitating cross-blockchain transfers. The team cited insufficient revenue to cover expenses as the primary reason for the shutdown, attributing this to reduced fees and a shift in activity toward AI rather than Web3.
Despite attempts to find alternative revenue streams through commercial agreements and project sales, the efforts were unsuccessful. As part of the closure, Router will burn 303,333,198 ROUTE tokens and coordinate with exchanges regarding the delisting of the token. ROUTE holders are advised to stay informed about trading and withdrawal timelines set by their platforms.
Interestingly, the token's price saw a 19% increase in the last 24 hours.
Orionx Initiates Closure After Audit Findings
Orionx began its closure process on September 3 after an audit revealed over $7 million in client assets had been transferred to wallets not controlled by the exchange. Discrepancies between internal records and actual balances for cryptocurrencies like Bitcoin and Ethereum were also uncovered, revealing that user accounts showed more cryptocurrency than was available in the exchange's wallets.
Withdrawals have been halted as Orionx works to return as many assets as possible to clients, although complete reimbursement is not assured. The company has filed criminal charges against co-founders Roberto Zibert and Joaquín Díaz, alleging their involvement in the operations that led to the discrepancies, which both deny. In a recent investment round in June 2025, Tether, the issuer of the USDT stablecoin, led the funding for Orionx.
This wave of shutdowns follows the earlier closures of other exchanges, including BitMart and BitMEX, reflecting ongoing challenges in the cryptocurrency market.
